Digital Transformation
In an increasingly digital world, technology plays a critical role in strengthening security, improving decision-making, and embedding sustainability into business operations. At San Miguel Corporation, we are adopting digital solutions to enhance cybersecurity, harness data analytics, and drive efficiency across our value chain. These efforts support our longterm resilience while ensuring that innovation contributes to both business growth and sustainability goals.
Our digital transformation strategy is anchored on two key pillars: strengthening cyber resilience to safeguard our systems and data, and harnessing data analytics to unlock valuable business insights and drive innovation. By embedding these priorities into our core operations, we are fortifying SMC’s ability to adapt to emerging risks, optimize business processes, and create long-term value for our stakeholders.
The following sections outline how we are enhancing our cybersecurity infrastructure, improving data governance, and fostering a culture of digital innovation—ensuring that technology remains a key enabler of our sustainability journey
Strengthening Cyber Resilience
As San Miguel Corporation accelerates its digital transformation, cybersecurity remains at the core of our sustainability strategy, ensuring that our operations, data, and stakeholder interactions are protected against evolving cyber threats. Our cybersecurity management system is aligned with global standards and best practices, integrating ISO 27001 principles and the National Institute of Standards and Technology (NIST) Cybersecurity Framework.
Cybersecurity is at the core of San Miguel’s digital transformation— protecting our systems, data, and stakeholders, through 24/7 monitoring, advanced threat defenses, and compliance with global standards.
To build a resilient and futureready cybersecurity posture, we continuously refine our Information Security Management Systems, which were strengthened in 2020 with updated security policies developed in collaboration with an external consulting group.
These policies are designed to address emerging threats, enhance risk mitigation, and reinforce compliance with global benchmarks, including NIST and the Center for Internet Security Benchmarks.
Our cybersecurity strategy follows an Implementation Roadmap, designed to proactively identify, assess, and remediate security risks across all business units. Regular evaluations of our cybersecurity framework allow us to close gaps, improve safeguards, and maintain compliance with evolving standards. One of our most significant advancements is the launch of our 24/7 Security Operations Center, which continuously monitors, detects, and mitigates cyber threats in real‑time.
Governance and Oversight
SMC’s cybersecurity governance structure is designed to provide strategic oversight and operational effectiveness across all levels of the organization. The Information Security Steering Committee, composed of executive department heads, governs cybersecurity policies, while the Information Security Technical Working Group, with representatives from various departments, ensures a multidisciplinary approach to cybersecurity governance.
The Corporate IT Group, led by a head reporting directly to the President of SMC, is responsible for executing our cybersecurity strategy. Additionally, the IT Security Council, which includes the SMC IT Security Manager and Information Security Officers from our business units, meets monthly to align security initiatives across the Group.
Cybersecurity Measures and Threat Protection
We employ advanced cybersecurity controls to safeguard our systems, prevent data breaches, and fortify operational resilience. Our Defense-in-Depth approach layers multiple security measures across networks, endpoints, applications, and data assets, ensuring a proactive and adaptive security posture.
Endpoint Security & Threat Intelligence: Our Endpoint Management Platform enables continuous monitoring and rapid response to malware and ransomware threats, while encryption technologies ensure data confidentiality.
Network Security & Access Control: We have implemented Secure Network Zoning and Network Segmentation, allowing only registered and authenticated devices to access our systems, thereby reducing exposure to potential attacks.
Cloud & Application Security: A Centralized Authentication System, including MultiFactor Authentication and stringent password policies, strengthens security for both on-premise and cloud-based applications.
Business Continuity & Disaster Recovery: We maintain industry-leading backup and recovery protocols, ensuring IT system resilience and operational continuity through redundant, multi-vendor Wide-Area Networks.
To stay ahead of emerging threats, we conduct third-party cybersecurity audits, internal security reviews, and Vulnerability Assessments & Penetration Testing. These assessments help us identify vulnerabilities before they can be exploited, reinforcing our security posture against malicious attacks.
As phishing and Business Email Compromise attacks continue to rise, we have deployed multilayered anti-phishing technologies to protect employees and prevent unauthorized access to critical systems. Employee awareness remains a key defense, and we conduct regular information security training to foster a culture of cyber vigilance across the organization.
Looking ahead, SMC will continue to expand its cybersecurity organization, enhance security controls, and invest in nextgeneration security technologies, ensuring we remain resilient against the ever-evolving cyber threat landscape.
Sustainability-Driven Digital Transformation
As part of SMC’s broader Digital Transformation Program, we are modernizing our Enterprise Resource Planning systems to drive operational efficiency, transparency, and sustainability across all business units. These advancements enable standardized financial reporting, improved data governance, and structured ESG tracking, ensuring that sustainability remains embedded in every aspect of our business operations.
Enhancing ESG Data Management and Compliance
A dedicated sustainability reporting system will be launched this year, serving as the primary ESG tracking tool for:
Centralized sustainability data management, enabling accurate tracking of emissions, energy consumption, and waste generation.
Enhanced compliance and auditability, ensuring adherence to sustainability reporting frameworks and evolving regulatory requirements.
Improved ESG performance monitoring, aligning operational decisions with corporate sustainability targets.
Strengthening Sustainable Procurement with Digital Integration
To advance responsible sourcing and strengthen supply chain sustainability, SMC is introducing a Supplier Compliance Framework that leverages real-time data and certifications to:
Monitor supplier ESG compliance, ensuring alignment with sustainability requirements and ethical sourcing principles.
Enhance sustainable procurement, integrating ESG factors into purchasing decisions for a more responsible supply chain.
Improve Scope 3 emissions tracking, enabling more data-driven sustainability assessments across our supplier network.
San Miguel is equipping teams with the skills and tools to use data better — building a strong data culture by integrating analytics into daily work and decision-making process across the organization.
Through these digital innovations, SMC is reinforcing its commitment to sustainability, transparency, and operational resilience, ensuring that technology remains a key driver in achieving our long-term environmental and business goals.
Turning Data into Action
At San Miguel Corporation, we recognize that data is more than just numbers—it is a powerful driver of innovation, efficiency, and long-term growth. Through our Data and Analytics Group (DAG), we are strengthening our ability to harness insights that improve decision-making, optimize processes, and create business value across all our operations.
Since the transformation of Operations Research to an expanded Data Analytics Group in 2021, DAG has built a strong foundation for a Company-wide data strategy. This roadmap focuses on data management, advanced analytics, and fostering a data-driven culture, ensuring that every decision is backed by meaningful insights. In 2024, we accelerated these efforts by expanding our analytics projects, automating key reporting functions, and deepening data literacy across the San Miguel Group.
Expanding Analytics to Drive Business Impact
This year, DAG partnered with various business units to implement targeted analytics projects designed to enhance operational efficiencies, optimize decision-making, and uncover new opportunities for growth.
Key initiatives included:
Customer Segmentation and Analysis – Profiling customers based on aggregated data to tailor marketing strategies and improve the effectiveness of promotional campaigns.
Geolocation Dashboard – Developing an interactive platform that provides realtime visibility of Company assets across different locations.
Sales Monitoring Dashboards – Streamlining sales performance tracking and inventory management through automated reporting tools.
Quality Culture Insights – Analyzing survey responses to identify actionable strategies that reinforce quality standards and strengthen workplace culture.
Automated Data Consolidation – Simplifying reporting and planning processes by integrating data from disparate sources, enabling more efficient monthly reporting and forecasting.
By integrating analytics into core business processes, these initiatives have unlocked productivity and strengthened our ability to make data-driven decisions across multiple functions.
Fostering a Strong Data Culture
Beyond analytics applications, we are committed to building a workforce that understands and effectively utilizes data. Through various data literacy initiatives, we are empowering employees at different levels to appreciate analytics and its role in shaping the future of business.
In 2024, we expanded our Thought Leadership Talks, a series of expert-led discussions on data analytics, artificial intelligence, digital transformation, and emerging technologies. Over the course of the year, we hosted 14 talks, attended by nearly 2,700 employees, with a total of 24.5 learning hours. These sessions, now available on our Learning Management System (LMS) portal, have been instrumental in promoting responsible data use and enhancing crossfunctional collaboration. Survey results showed that 74% of participants strongly agreed that the discussions were relevant and applicable to their work.
Recognizing the need for hands-on training, we also piloted:
Data Mining using Power BI – A practical training program designed to equip employees with data exploration and visualization techniques. Four sessions were completed by 40 participants, totaling 64 learning hours across sales, finance, HR, and operations teams.
Analytics for Leadership Development – A specialized analytics track introduced in SMC’s LMDP Batch 28, providing executives with a deeper understanding of how data analytics strengthens strategic leadership.
Industry Collaboration through AAP – In May 2024, SMC became a Gold Member of the Analytics and AI Association of the Philippines (AAP), connecting us with industry peers and enabling collaboration on data-driven solutions that contribute to national development.
Scaling Analytics for Greater Impact
As we continue to embed analytics into our business, we aim to scale our impact by:
Expanding analytics-driven decision-making across more business units.
Leveraging AI and machine learning for predictive insights and process automation.
Developing a centralized data-sharing platform to improve accessibility and collaboration.
By continuously refining our data analytics capabilities, we are not only optimizing internal efficiencies but also reinforcing our commitment to responsible digital transformation. With data as a strategic asset, San Miguel Corporation is shaping a future where smarter, faster, and more informed decisions drive business excellence and sustainable growth.